I’ve had quite the history with the Citi Prestige card over the past few years. That history began a few years ago when I product changed from the Citi AAdvantage Executive card to the Citi Prestige card. I product changed to the Citi Prestige card because the card’s benefits included Admirals Club access, but also came with additional benefits which made the card a better value.
However, since then Citi removed the Prestige card’s Admirals Club benefit and reduced a few other benefits which resulted in making the card redundant in my wallet given the other cards I also carry. As a result, I downgraded my Citi Prestige card to the Citi ThankYou Premier card in early 2017. Since then, Citi has made several enhancements to the Citi Prestige card and perhaps now it finally makes sense to carry the card once again. In fact, after reviewing the card’s new benefits, I’m starting to wonder if it’s worth taking a more in-depth look at my wallet. Perhaps it might even be time to reconsider carrying the famed Chase Sapphire Reserve card.
Citi Prestige Cards New Benefits 2019
The benefits Citi recently added to the Prestige card make this card a fairly well-rounded “premium” credit card. In fact, given the card’s new benefits, this card could end up being the best all-around premium credit card available today.
- 5X Points On Air Travel
- 5X Points On Restaurants
- 3X Points On Hotels
- 3X Points On Cruise Lines
- 1X Points On All Other Purchases
- New 50,0000 ThankYou Point Sign Up Bonus (After $4,000 spend in 90 days)
- Modified Complimentary 4th Night Free Benefit
- $250 Annual Travel Credit
- Complimentary Priority Pass Select Membership
- $495 Annual Fee
As you can see, the points earning potential of the Citi Prestige card is quite strong. Additionally, the card offers $250 of automatic “travel” credits which help reduce the effective annual fee to just $245. While that’s still a considerable amount of money most card holders should be able to offset that value through the 4th night free program. More on that in a second.
All in all, given the card’s benefits, I could see myself easily breaking even on this card and perhaps even coming out ahead. However, like all cards, there are a few shortcomings to consider before applying. I’ll quickly point out the highlights and shortcomings of this card and then analyze how the new Citi Prestige card (potentially) fits into my wallet.
5X Points On Air Travel
The Citi Prestige card does not offer 5X Points on “Travel,” but rather only offers 5X points on “Air Travel.” Specifically, per Citi’s website, you’ll earn 5X points on all purchases made directly with an airline or at travel agencies.
At the moment, only the American Express Platinum card offers 5X points on airline purchases. However, American Express only awards 5X points on purchases made directly with the airline. Purchases made with online travel agencies do not count as 5X point transactions with the American Express Platinum card.
Additionally, the Travel Protection offered from the Citi Prestige card is better than the protection offered by the American Express Platinum card. Given both cards now award 5X points on airfare I’d be included to book future air travel through the Citi Prestige card given the more robust travel protection offered.
5X Points On Restaurants
Another of the Citi Prestige card’s 5X points categories is restaurant purchases. This is a fairly straight forward category to understand, but there is a key item to note. This card offers 5X points on all restaurant purchases unlike other cards that limit the bonus points to just US restaurants. So, if you are a frequent traveler who often dines out abroad, this is definitely the card to carry.
4th Night Free Benefit
The 4th night free benefit was at one time among the most lucrative credit card benefits around. However, over the year’s Citi has “enhanced” this benefit significantly, but that doesn’t mean it still isn’t valuable. Starting later this year Citi Prestige card holders will only receive 2 fourth night free credits per calendar year. Until then this benefit is still technically unlimited.
Another change is that all bookings must now be made through the ThankYou booking service either online or by phone. This creates a slight issue for some as these bookings typically won’t earn elite qualifying nights or hotel points. However, since you’re getting the 4th night free perhaps it’s worth foregoing the nights and points.
Receiving the benefit is fairly straightforward. Simply book your qualifying hotel through the ThankYou portal and the discount will be applied at checkout. I personally haven’t used this new system of booking the 4th night free so I’ll have to test it out once I (maybe) get the card. Ok fine, I’m getting it, calm down!
Personally, even after September when card holders can only use this benefit twice a year, I think most can easily get $245 of value from this benefit annual to at least break even on carrying the card. Sure, it means missing out on 8 elite nights a year, which hurts, but I’d much rather have the $245 in my pocket these days.
How Does The Citi Prestige Card Fit Into My Wallet?
Right now my wallet is primarily dominated by 4 cards. Those cards are the Amex Platinum card, the Amex New Metal Gold Card, the Chase Sapphire Reserve card, and the Citi ThankYou Premier card. All of the other card accounts i have open sit in a drawer and are rarely used for everyday spend. As you can see from my current card lineup, there is some redundancy and perhaps it’s time to reevaluate carrying at least one of the three “premium” cards and replacing it with the new Citi Prestige card. Again, I’m getting it so which card needs to go…
American Express Platinum Card Replacement?
Well, the thing is that the Citi Prestige isn’t a great replacement for the American Express Platinum card. See, while the Citi Prestige offers 5X points on air travel, the Platinum card offers a ton of other benefits not offered by the Prestige card. For example, the Platinum card’s lounge access is superior and the Platinum card grants you elite status with Marriott and Hilton. Also, considering the Platinum card’s out-of-pocket cost is just $50 ($550 annual fee – $200 airline credit – $200 Uber benefit – $100 Saks Benefit) which you can recoup in just one visit to a Centurion Lounge. Bottom line, the Citi Prestige card is not a replacement to the Platinum card. However, if you are starting out I would argue that it makes sense to start with the Prestige card over the Platinum card.
American Express Gold Card Replacement?
Likewise, I’m not sure that it’s a great replacement (for me) for the Amex Gold card. Yes, the 5X points on dining is superior, but the Citi Prestige card does not offer any bonus points on grocery store spending. So, if for nothing else, I think the Gold card is worth keeping provided you spend at least $500/year on groceries. I say that because $500 on groceries earns you 2,000 MR points which are worth about $30. $30 is the out-of-pocket cost of carrying the Gold card ($250 annual fee – $120 dining credit – $100 airline credit).
On top of the 5X grocery store spend I still find that it could be worth putting some dining spend on the Gold card over the Citi Prestige card. Obviously by putting dining on the Gold card over the Citi Prestige card you’re missing out on an extra point per dollar spent, however many may find Amex Membership Rewards points to be more valuable than Citi ThankYou points. For example, I like to redeem Amex points for British Airways Avios at times and Citi does not offer British Airways as a transfer partner. That being said, Citi does have a ton of transfer partners available.
Overall, I wouldn’t choose the Gold card over the Citi Prestige card if those were my only options. However, I do think given my current wallet that there is room for both. The Gold card is the only card that I carry which offers bonus points on grocery spend. If I add the Citi Prestige card to my wallet (I will) perhaps it makes sense to look into other grocery oriented cards which lack an annual fee.
Chase Sapphire Reserve Replacement?
At first glance, I think the answer is yes given my current wallet. From a points standpoint alone, the Citi card offers 5X points on Air Travel and 3X points on hotels. That beats or matches the bonus points offered by the Chase Sapphire Reserve card. One thing to note is that the 3X travel category from the Chase Sapphire Reserve card does include a much broader range of travel spend. For me personally though, a large majority of my annual spend is in the Citi Prestige 5X and 3X categories. As I already retain the Citi ThankYou Premier card I will simply shift my other “travel” spend to that card which also offers 3X points.
Beyond that I can’t really see any unique benefits (that I use) to carrying the Chase Sapphire Reserve card over the Citi Prestige card. If I were to add the Citi Prestige card to my walled I’d end up paying a $249 annual fee, but I’d also drop my Chase Sapphire Reserve account and save $150. Net I’d pay an extra $100 to earn 5X points on dining and get two free hotel nights annually.
The only thing that makes me nervous about picking up the Citi Prestige card and dropping the Chase Sapphire Reserve card is the Reserve card’s future. Since launching the card in 2016 Chase has made very few changes to the Reserve card. From what I’ve seen over the past few years I’d argue that a significant overhaul of the Sapphire Reserve card is due. My fear is that I’d close the card just months before Chase suddenly begins offering 5X points on “travel” and “dining” and I end up with the inferior card.
Final Thoughts
No matter how hard I try to pull away Citi seems to constantly find a way to pull me back in. With the changes to the Citi Prestige card I think now is a greta time to apply for the Citi Prestige card. The card’s benefits make it a competitor with most other cards, but I don’t love the card’s limited 5X “travel” category.
I also don’t love that if I choose the Prestige card over the Reserve card I’ll end up paying $100 more in annual fees. Still, by switching I would get more than $100 of value back from the Prestige card and therefore I believe the switch would be overall beneficial.
Overall, I won’t be making a decision today, but if I were a betting man I’d bet that the Citi Prestige card finds its way into my wallet at some point in 2019. Besides, it sure would be nice to pick up an extra 50,000 ThankYou points.
